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I am 63 years old and have a large IRA holding. I was taking a large distribution from the IRA to get it out of the 28%+ tax bracket. I thought that paying a 20% gain was better than paying a 28%+ tax.

However some people have been telling me that if I took the distribution, payed tax on the distribution, and put the balance in a Roth IRA that I would not have to pay any additional tax on the gain and could take it out at any time. This sounded too good to be true and so I had just not considered the Roth as an option.

Is what they are saying true? And does this seem to be a Foolish thing to do?????
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